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South Texas Money Management CEO Jeanie Wyatt on why she has a positive outlook for the markets.
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-- -- Into the market driver today given the uncertainty of the budget deal by the your enemy today it looks good but the past couple of days it's been up and down.
Hundreds of companies as you know fast tracked their dividends more than 200 -- implemented special -- simply because.
They don't know what kind of tax treatment will really happen after the first of the year.
Let's put that aside -- with the investor should you be aggressive assertive.
Or shrinking violet joining me now -- -- Fox Business explicit Jane -- south Texas money management CEO MCI up okay.
Putting in the criticized for -- before any steals it argue would -- investor right now.
Or argue -- shrinking violet.
This conservative Texas investor is a survey right now right now -- -- certainly been assertive since early summer we've wanted to get accounts fully invested in stocks.
Despite the fiscal cliff worries.
What we've been watching closely is the housing market and we are convinced that US housing his bottom.
And five years of inventories have been worked off.
And mortgage rates are so low and that helps consumer sentiment so much so we're very positive on the market and if in the next few days the next few weeks there's an erection.
Because of compromise is not met and I promise you nobody's gonna look like the compromise in there will be a compromise nobody's going to be happy does not -- its successful if everybody's a little unhappy exactly right.
Exactly but putting that sort of get into the pot of how to would best -- So if you -- going all out assertive not shrinking violet what are you -- Well we're buying.
We're buying a lot of a lot of companies.
Our portfolios have about sixty to seventy stocks -- them all sectors we have some papers are -- up for the year.
Yes that'll toughen up that I can -- -- percent apparently.
Well we're we're somewhat trailing the market.
About 13%.
Thirteen.
Now around thirteen what's your favorite investment right now you -- you could choose from equities you -- choose from Munis which again there's still some question about whether the tax treatment will change under under the new laws if there is one what do you -- right now.
The best way to stay fully invested to the maximum in stocks is to have a good hedge from high quality bonds so.
Very.
Ironically we are still buying bonds as well there you hottest Munis.
Yes -- most cases.
Tax free municipal securities guide us.
There are thousands of them out there.
What do you look for.
The good news is that there are thousands of them out there you can very easily by high quality single a double way.
Are higher triple play and I have lots of good choices so -- is the lowest you ago.
-- we would go because we want that hedge their heads up high quality bonds can give you.
-- by lower quality they're not necessarily gonna help hedge your equity longer duration shorter duration shorter duration.
We prefer buying new issues that 'cause there's no mark -- -- get better pricing.
And you get better selections of new issues we we work with about fifteen dealers around the country to get that.
That better pricing.
And we do want lower direction.
That's a bit more defensive Jim Carrey is should they be hospital should they be odd couple general obligation -- a lot applications that fight for our viewers what that weeks well that's where there is the full taxing authority.
To raise -- raise taxes if needed to cover the interest payments so that very conservative strategy but again.
I even where investors don't necessarily need the cash flow -- It's a very good hedge to their equity position in 4 o'clock hour we've got the CEO and fox this is exclusive of Manitowoc -- make gigantic cranes.
They also have a food services business but.
Manufacturing.
Looks interesting right -- is an interesting actually -- firm has been talking for the past two years.
About -- anticipation that we could happen manufacturing resurrection in this country.
Primarily -- -- of low natural gas prices and the abundance of natural gas.
You know I mean and sounds so the eagle Ford is right at our back door it is amazing how much.
Higher energy and -- in this country has changed in a short time for.
So that's very positive for -- manufacturing.
Here in the US in the long term.
On that note she's coming back in just a moment with some of her favorite money making names including a manufacturer and some financials at her number one a money -- don't -- genie shall be back in just a minute.
